Do you dream of owning a home someday? If so, you’re not alone. The desire to put down roots and invest in a home is a common one.
And this dream is still strong across North America. The problem is, many can’t afford it.
To many, the dream seems elusive as a result of the significant cost not just of purchasing a home but also in carrying it. Many who would like to and can pursue the dream never will due to fears associated with the lack of affordability (“Will I be in over my head?” “Will I lose money?”).
According to the 2017 National Housing Pulse Survey conducted by the National Association of Realtors (NAR), 84% of Americans view owning a home as “a good financial decision.” And 80% of respondents see homeownership as a way of building equity toward their retirement. As well, 50% believe homeownership is an avenue to a secure neighborhood and a stable family environment. However, the positive sentiments don’t necessarily mean all of these respondents will be home-shopping this year.
Affordability is a concern
Why? Some 60% of those responding to NAR’s survey identify affordability as one of the top five challenges of homeownership. Many also believe the myth that they need significant savings (more than 15%) for a down payment on a home. According to the survey, 69% felt a “reasonable” down payment was 10% or less, while more than 40% believe lenders require down payments of 15% or greater.
That said, the survey itself supports a willingness for people to learn, wait and save – if it means the culmination of their dream.
NAR President Bill Brown, quoted in an article in RISMedia, says: “Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own.”